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Anyone got any decent rates on recent land purchases

  • Deleted by IowaBowHunter1983
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Another thing to look at is retirement account...if no penalty, cash them out and use as payment. If ag ground do the math ..see what return in investment is and bet you could better returns than that retirement account.
 
If you’re old enough to withdraw without penalty, which is 59 1/2, one must pay income tax on a withdrawal. Not sure I’d put my entire nut in ag or rec ground.
 
Pretty sure u can put into a self directed ira and then roll into "investment ground" and not pay tax on it.

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I don’t believe that is accurate. I have taken small withdrawals over the years, when I bought my first piece years ago, and it was taxed.

I’ve never heard of that exemption unless you do not use the land. If you buy rec ground with tax exempt Ira money and hunt it there are stiff penalties. Not worth it.

You can roll that dice but when the irs catches up they tack on penalty/interest on the missed years and contact your state revenue office to inform them. Now you have two agencies with scopes up your backside.

“Ground investment…, the tax implications remain the same: withdrawals from a traditional IRA are taxed as ordinary income, and withdrawals from a Roth IRA may be subject to taxes and penalties if they are not qualified withdrawals. “
 
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Wi transplant said:
Pretty sure u can put into a self directed ira and then roll into "investment ground" and not pay tax on it.

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Windlooker said:
I don’t believe that is accurate. I have taken small withdrawals over the years, when I bought my first piece years ago, and it was taxed.

I’ve never heard of that exemption unless you do not use the land. If you buy rec ground with tax exempt Ira money and hunt it there are stiff penalties. Not worth it.

You can roll that dice but when the irs catches up they tack on penalty/interest on the missed years and contact your state revenue office to inform them. Now you have two agencies with scopes up your backside.

“Ground investment…, the tax implications remain the same: withdrawals from a traditional IRA are taxed as ordinary income, and withdrawals from a Roth IRA may be subject to taxes and penalties if they are not qualified withdrawals. “
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Self Directed IRA is not a withdrawal. It's no different than moving investment vehicles within your retirement portfolio.

Technically you cannot use self-directed IRA properties for personal use. I have yet to see an IRS agent walking around to see if you are hunting tho.......
 
I hear you. It’s like anything with the irs. I know people who unjustly took the business loans during covid, did not need it and used it on improper purchases. One got away with it so far and the other is in a shit storm.

Roll the dice if you want to look over your shoulder. One of the most under rated pleasures of life is peace of mind.
 
Windlooker said:
I hear you. It’s like anything with the irs. I know people who unjustly took the business loans during covid, did not need it and used it on improper purchases. One got away with it so far and the other is in a shit storm.

Roll the dice if you want to look over your shoulder. One of the most under rated pleasures of life is peace of mind.
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Lil bit of apples and oranges.

You can 100% buy farms thru retirement accounts, legally.
 
Heck trumps firing 45k irs agents !! Gonna be busy doing other stuff vrs looking into if your walking on an investment property!

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With today’s tech it’s as simple as looking at an aerial photo. Whose box blind is that?? Heck the FSA did it to me years ago. I built a Morton building without asking their permission while in crp. Got the letter, the threats etc. All from one person tasked with looking at aerial maps. It’s not that simple on other properties but on many it would be.
 
No different than buying a duplex and renting it out ! You can work on and fix up all you want! Then rent out . If you buy a farm and rent out farm ground you can tile the fields cut timber ect. While " improving your investment. Same thing!

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Whose box blind is in your field?? You made the investment to let others use it? Maybe. Again I would not roll that dice. Go ahead. To each their own. I’m buying rec ground to hunt. I’m will not get in the cross hairs of the irs. Trust me that’s a bad day, month, years possibly.
 
Apples and oranges. I’m not investing in land, ag or rec ground, to not use it. Great investment if you have the assets to do so. I’m sure this is a great angle for big ag and others who have windfalls, inheritance ..to spread money around.

If you’re into flipping farms, where you have enough to hunt and enough capital to buy property, not use it and sit on it, I get it. Many can’t do that.

For those who want to buy rec ground, and USE it, this video is worthless. Maybe later in life this is an option but it certainly wasn’t when I was 23 buying my first 80 with minimal savings.
 
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There are various types of accounts that taxation doesn't apply. I had to investment life insurance policy that I cashed out. Earns money, no penalty to pull out of at any point. It was like a fancy savings account..up front initial investment was the biggest

And like our row crop...buy and let someone else pay for it. That I do have to pay income on which drives me crazy. Lol
 
Another way to pay for your rec ground...row crop, roll rent payment into rec ground. ROI is usually 3-5 percent per year depending on contract length and land per acre
 
I have land in Self Directed IRA and yes you are not supposed to use it.. you can rent it/crop lease or take timber income off of it .

Mine is a 40 acres—you can’t see from the road . I’ve actually never hunted on it, but scooped up some sheds for it .

Never seen an IRS agent on it ;) .. once you hit 59.5 I think the restrictions are lifted.
 
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